HCLTech Associate Manager Interview Questions, Process, and Tips

Budget is a plan for future expenses and revenues, while forecast is a prediction of future financial outcomes based on current data.

• Budget is a fixed plan for a specific period, while forecast is an estimate that can be adjusted as new information becomes available.

• Budget is usually set at the beginning of a fiscal year, while forecasts can be updated regularly throughout the year.

• Budgets are typically more detailed a...read more

Revenue recognition principles are guidelines for when and how revenue should be recorded in financial statements.

• Revenue should be recognized when it is earned, not necessarily when cash is received.

• Revenue should be recognized when it is realized or realizable and earned.

• The amount of revenue recognized should be the fair value of the consideration received or expected to be received.

• Revenue recognition principles ar...read more

DSO stands for Days Sales Outstanding and DPO stands for Days Payable Outstanding. DSO measures how long it takes for a company to collect revenue after a sale, while DPO measures how long it takes for a company to pay its suppliers.

• DSO measures the average number of days it takes for a company to collect revenue after a sale.

• DPO measures the average number of days it takes for a company to pay its suppliers.

• DSO is cal...read more

Accruals are revenues earned but not yet received, while deferrals are revenues received but not yet earned.

• Accruals recognize revenue when it is earned, regardless of when cash is received.

• Deferrals recognize revenue when cash is received, regardless of when it is earned.

• Accruals are used to match revenues with expenses in the same accounting period.

• Examples of accruals include accounts receivable and revenue earned b...read more